Uxin (NASDAQ:UXIN) & Sprout Social (NASDAQ:SPT) Critical Analysis

Sprout Social (NASDAQ:SPT) and Uxin (NASDAQ:UXIN) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Sprout Social and Uxin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprout Social	1	6	6	0	2.38
Uxin	1	0	1	0	2.00

Sprout Social presently has a consensus target price of $21.91, suggesting a potential upside of 202.61%. Uxin has a consensus target price of $4.50, suggesting a potential upside of 30.06%. Given Sprout Social’s stronger consensus rating and higher possible upside, analysts plainly believe Sprout Social is more favorable than Uxin.

Profitability

This table compares Sprout Social and Uxin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprout Social	-10.59%	-18.93%	-7.76%
Uxin	-10.66%	N/A	-8.15%

Valuation & Earnings

This table compares Sprout Social and Uxin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprout Social	$405.91 million	1.06	-$61.97 million	($0.81)	-8.94
Uxin	$190.40 million	3.42	-$11.18 million	($0.20)	-17.30

Uxin has lower revenue, but higher earnings than Sprout Social. Uxin is trading at a lower price-to-earnings ratio than Sprout Social, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

22.4% of Uxin shares are held by institutional investors. 10.1% of Sprout Social shares are held by insiders. Comparatively, 62.9% of Uxin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Sprout Social has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Uxin has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

About Sprout Social

Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. It offers integrated tools, such as social engagement/response; publishing; reporting and analytics; social listening and business intelligence; reputation management; social commerce; employee advocacy; and automation and workflows. In addition, the company provides smart inbox, social customer relationship management, social monitoring and alerts, customer service tools, and automation; and centralized content planning, creation, and publishing, automated scheduling, content performance reporting, suggested content, message approval workflows, publishing permissions and governance, and content and asset libraries. Further, it offers social media; content performance, customer service and team, custom report builder, and reporting API; and market research, brand health, competitive insights, consumer trends, and product feedback; and social commerce, reputation management, employee advocacy, mobile applications, and chat bot creation and management. Additionally, the company offers professional services consisting of consulting and training services. It serves social and community management; public relations; marketing; influencer marketing; customer service and care; commerce, sales and customer acquisition; recruiting and hiring, product development, and business strategy; and small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. Sprout Social, Inc. was incorporated in 2010 and is headquartered in Chicago, Illinois.

About Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.